VELESTO ENERGY BERHAD

Malaysia | 5243.KL | Main

By Sustify.world AI model | 2025-05-25
Velesto Energy Berhad, an investment holding company, engages in activities in the upstream sector of the oil and gas industry in Malaysia and internationally. It operates through the Drilling Services, Integrated Project Management, and Oilfield Services segments. The Drilling Services segment engages in the provision of drilling services to the upstream oil and gas sector; and the ownership and operation of drilling rigs, which are chartered out to oil majors for exploration, development, and production activities. Its Integrated Project Management segment offers hydraulic workover operations, which own hydraulic workover units (HWUs) and act as an agent for two providers of specialized equipment and services; and HWUs that service offshore wells, which involve the use of HWUs and ancillary equipment to complete the removal and replacement of well equipment to restore the operation of suspended or under-performing wells. The Oilfield Services segments provides oil country tubular goods threading, repair, and inspection services. The company also offers treasury management services; engineering services for oil and gas exploration, development, and production; and training and courses in relation to oil and gas drilling activities. In addition, it engages in the ownership and leasing of rigs. The company was formerly known as UMW Oil & Gas Corporation Berhad and changed its name to Velesto Energy Berhad in May 2018. Velesto Energy Berhad was founded in 1988 and is headquartered in Kuala Lumpur, Malaysia.

Reference

Report Year: 2023
Source Files: Velesto_IAR2023_-_Part_01.pdf, Velesto_IAR2023_-_Part_02.pdf, Velesto_IAR2023_-_Part_03.pdf, Velesto_IAR2023_-_Part_04.pdf

Sustainability Committee

Sustainability Committee (Unknown pax) 🟢

  • SMC oversees ESG 🟢
  • BRMC reviews risks 🟢

Reporting

GRI, TCFD, Integrated Report 🟢

GHG Accounting

Velesto Energy Berhad demonstrates a structured approach to GHG accounting with detailed reporting of Scope 1 (63,469 tCO₂e) and Scope 2 (477 tCO₂e) emissions for 2023, alongside limited Scope 3 data (67 tCO₂e for travel and commuting). Strengths include quantifiable emission intensity reductions (28% per operating day and 63% per revenue since base year) and alignment with TCFD for climate risk disclosure. However, the absence of third-party verification and incomplete Scope 3 coverage are notable gaps. The company lacks clarity on GWP basis and standards used. Improvement is needed in expanding Scope 3 inventory and obtaining external assurance to enhance credibility.

Emissions

Scope Value Note
Scope1 63,469 tCO₂e 🟢
Scope2 477 tCO₂e 🟢
Scope3 67 tCO₂e 🟢 Limited to business travel and commuting ⚠️
Biogenic emissions Not applicable → No biomass or biofuel usage reported.

Other Details

  • Base year: Not specified
  • Boundary inventory: Operational control (Malaysia operations)
  • Gwp basis: Not specified
  • Standard: Not specified
  • Data collection approach: Internal data collection templates introduced in 2023
  • Third party verification: No
  • Carbon intensity: 34 tCO₂e/day, 53 tCO₂e/RM mil, not verified ⚠️

Efforts

  • 28% reduction/day 🟢
  • 63% reduction/revenue 🟢
  • Net Zero 2050 target 🌞
  • 2.2% water intensity reduction 🟢

Social Highlights

  • 401 employees trained 🥗
  • RM 55,000 community investment 🥗
  • 256 volunteer hours 🥗
  • 70% local supplier spend 🥗
  • Limited data available ⚠️

Governance

  • Salary disclosure: Disclosed for Directors 🟢
  • Litigation: Corruption case, 2023 🔴

Report Quality

Commendable progress in Velesto's 2023 sustainability reporting, with quantifiable metrics such as a 28% reduction in emission intensity per operating day and 63% per revenue 🟢. The integrated report aligns with GRI and TCFD frameworks, showcasing a strong governance structure via the Sustainability Management Committee. Forward-looking commitments like Net Zero by 2050 are promising 🟢. However, the report lacks third-party verification and comprehensive Scope 3 emission data, limiting credibility ⚠️. Some sections rely on generic statements (e.g., 'committed to sustainability') without detailed outcomes. Velesto could improve by incorporating external assurance, expanding Scope 3 reporting, and providing deeper measurable impacts for social initiatives. Overall, a solid foundation exists, but enhanced specificity and validation would elevate its standing.

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